Home Depot's (HD) Buy Rating Reaffirmed at Guggenheim

Key Points

• Guggenheim reaffirmed its Buy rating on Home Depot and set a $425 price target, implying 22.64% upside from the stock’s $346.54 opening price. Analysts overall rate the shares “Moderate Buy,” with an average target of $375.43.
• Home Depot exceeded quarterly expectations, reporting $4.92 adjusted EPS versus $4.73 anticipated and revenue of $47.86 billion, up 5.7% year over year. Comparable sales rose 1.7%, supported by repair and maintenance demand, while management reaffirmed fiscal 2026 guidance.
• Housing-market weakness remains a key risk: elevated mortgage rates and limited housing activity are discouraging large renovation projects, while the CEO’s medical leave and the stock’s valuation near 24 times earnings add uncertainty.

Home Depot (NYSE:HD - Get Free Report)'s stock had its "buy" rating reissued by Guggenheim in a report issued on Wednesday,Benzinga reports. They presently have a $425.00 price target on the home improvement retailer's stock. Guggenheim's price target indicates a potential upside of 22.64% from the stock's current price.

A number of other analysts have also recently issued reports on the stock. Mizuho set a $390.00 target price on shares of Home Depot in a research note on Wednesday. Gordon Haskett upped their price target on shares of Home Depot from $320.00 to $330.00 in a research note on Friday, June 12th. Sanford C. Bernstein set a $344.00 price target on shares of Home Depot in a report on Wednesday, August 12th. HSBC cut their price objective on shares of Home Depot from $392.00 to $310.00 and set a "hold" rating for the company in a research report on Wednesday, May 20th. Finally, Evercore reduced their price objective on Home Depot from $415.00 to $400.00 and set an "outperform" rating for the company in a report on Wednesday, May 20th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $375.43.

Home Depot Stock Performance

Shares of HD stock opened at $346.54 on Wednesday. The company has a fifty day moving average price of $340.08 and a two-hundred day moving average price of $340.97. Home Depot has a one year low of $289.10 and a one year high of $426.75. The stock has a market cap of $345.54 billion, a P/E ratio of 24.69, a P/E/G ratio of 4.08 and a beta of 0.95. The company has a debt-to-equity ratio of 3.23, a current ratio of 1.04 and a quick ratio of 0.28.

Home Depot (NYSE:HD - Get Free Report) last posted its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, topping analysts' consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The business had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same period in the previous year, the firm earned $4.68 EPS. The firm's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts predict that Home Depot will post 14.99 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Gator Capital Management LLC bought a new position in shares of Home Depot in the 4th quarter worth approximately $3,693,000. King Luther Capital Management Corp grew its position in Home Depot by 0.6% during the fourth quarter. King Luther Capital Management Corp now owns 1,240,478 shares of the home improvement retailer's stock valued at $426,848,000 after buying an additional 7,180 shares during the period. Thompson Siegel & Walmsley LLC grew its position in Home Depot by 320.4% during the fourth quarter. Thompson Siegel & Walmsley LLC now owns 11,292 shares of the home improvement retailer's stock valued at $3,886,000 after buying an additional 8,606 shares during the period. Capital International Inc. CA increased its holdings in Home Depot by 4.3% during the fourth quarter. Capital International Inc. CA now owns 150,368 shares of the home improvement retailer's stock valued at $51,742,000 after buying an additional 6,187 shares during the last quarter. Finally, Vise Technologies Inc. increased its holdings in Home Depot by 72.1% during the fourth quarter. Vise Technologies Inc. now owns 42,335 shares of the home improvement retailer's stock valued at $14,568,000 after buying an additional 17,731 shares during the last quarter. Institutional investors own 70.86% of the company's stock.

Home Depot News Roundup

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Quarterly results exceeded expectations: Adjusted EPS was $4.92 versus the $4.73 consensus, while revenue rose 5.7% year over year to $47.86 billion, above estimates of approximately $47.24 billion. Home Depot reaffirms guidance amid frozen housing market conditions
• Positive Sentiment: Comparable sales showed resilience: Companywide comparable sales increased 1.7%, including a 1.3% gain in the U.S.—the strongest comparable-sales performance since 2022. Customers are completing smaller repair and maintenance projects, and average ticket growth of 2.8% offset a 1.0% decline in transactions. Home Depot beats quarterly sales estimates on steady repair demand
• Positive Sentiment: Management reaffirmed fiscal 2026 guidance and analysts see potential for the stock to move toward $375 or higher. Home Depot also expanded three-hour Express Delivery nationwide, using more than 2,000 stores as fulfillment hubs to strengthen its Pro and do-it-yourself online business. Home Depot analysts see a path to $375 and beyond
• Neutral Sentiment: CEO Ted Decker’s medical leave remains an uncertainty for investors, but the earnings report indicated continued operational execution under the existing management team. Home Depot reports higher sales, but its CEO is on medical leave
• Negative Sentiment: The housing recovery is not yet visible: Management described conditions as a “frozen housing market,” with customers avoiding large-ticket renovations. Weak housing starts and elevated mortgage rates could limit future sales growth. Home Depot just flashed a housing market warning
• Negative Sentiment: A $730 million tariff refund largely offset rising costs, limiting its benefit to profits. High Treasury yields and Home Depot’s relatively high valuation—about 24 times earnings—also remain potential headwinds.

About Home Depot

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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